Adamant: Hardest metal

DAVOS-Brazil's Lula urges world fund to fight poverty

www.forbes.com Reuters, 01.26.03, 10:48 AM ET By Mark Trevelyan

DAVOS, Switzerland, Jan 26 (Reuters) - Brazil's new President Luiz Inacio Lula da Silva urged rich countries on Sunday to declare "war on hunger" and create a global fund to fight poverty.

"I propose to form an international fund to fight misery, hunger and poverty in Third World countries," the former trade union firebrand told the World Economic Forum annual meeting in Davos, Switzerland.

He said the fund could be set up by the Group of Seven industrialised nations and supported by international investors. "Many times poverty, hunger and misery are the trigger for fanaticism and intolerance," declared Lula, who took office on New Year's Day as head of South America's most populous nation and the world's ninth-largest economy.

"We need urgently to unite ourselves around a world compact for peace and war on hunger, and you can be sure Brazil will do its share of the work."

In his first major speech before global political and business leaders, he did not elaborate on the proposal.

Lula, viewed nervously by some investors who fear he may hurt the economy with populist policies, has declared a 'Zero Hunger' programme in Brazil and made it the top priority of his centre-left administration.

A FAIRER DEAL FOR DEVELOPING COUNTRIES In an impassioned speech, he dwelt repeatedly on the world's rich-poor divide and the need to fight for a fair deal for developing countries, especially on trade and debt.

"More than 10 years after the fall of the Berlin Wall, we still see other walls that separate those that eat from those that are in hunger; those that have jobs from those that are jobless; those who live in dignity from those who live in the streets or in shanty towns," he said.

"Brazil has to get out of the vicious circle of getting new loans to pay back previous loans...We want free trade, but free trade characterised by reciprocity."

All Brazil's efforts to boost its exports would be useless, he said, if others practised protectionism while paying lip service to free trade.

He pledged to show the same toughness in bargaining with rich countries as in his years of negotiating with employers as a factory worker and union boss.

"We want to respect the rights of all, of everybody. But I also want for others to respect the rights of Brazil. We do not want to be treated as a second-class citizen. We want to be treated on equal terms."

Brazil, he said, was "fighting corruption with great force" and was open to foreign investment.

"Brazil cannot continue to be a sleeping giant. And if God wishes, we will awaken this giant," he said.

Lula, a frequent critic of globalisation, delivered one of the most electric speeches of this year's Davos forum, an event often derided by opponents as an uncaring, arch-capitalist jamboree. He arrived direct from the World Social Forum in Porto Alegre, Brazil, which is sometimes portrayed as an "anti-Davos".

His Davos speech was greeted by warm applause and cheers. "I would like to invite all of you attending this meeting, at this magical mountain of Davos, to look at the world with fresh eyes," he said.

"It is absolutely necessary to build the world economic order to meet the demands of billions of people who live at the margins."

Lula is challenging the rich world's aloofness - Lula champions poverty fund

news.bbc.co.uk Sunday, 26 January, 2003, 17:45 GMT By Stephen Cviic BBC regional analyst

Brazilian President Luiz Inacio Lula da Silva has called for the creation of a global anti-poverty fund.

He told the World Economic Forum in Davos, Switzerland, that he hoped his idea would win support from the G-7 group of rich countries.

Brazil cannot continue to be a sleeping giant

The presence in Davos of Brazil's first left-wing president for 40 years is being seen as highly significant because of his ability to build bridges with the anti-globalisation movement.

Just a year ago, Lula da Silva was the leader of Brazil's left-wing opposition, a man regarded with suspicion by international financiers and a regular presence at the anti-globalisation movement's answer to Davos - the World Social Forum.

Since then, he has seen his status transformed, first by his election victory and later by the markets' realisation that the new Brazilian government intends to pursue orthodox economic policies.

Lula's decision to go to Davos this year after an appearance at the World Social Forum in Porto Alegre was criticised by some left-wingers in his own party.

But in his speech, he said he made no apologies, adding that there was no point in talking only to the people you already agreed with.

Fair share for all

Lula's speech emphasised a common global agenda directed at achieving growth alongside better income distribution and social conditions.

He called for developed countries to share scientific and technological advances with poorer nations and proposed the creation of a global anti-poverty fund.

And he had harsh words for what he called the protectionism of rich countries, saying that they preached but did not practice free trade.

In what has already become a theme of his one-month-old presidency, Lula stressed that Brazil intended to play a more active role in world affairs.

It could, he said, no longer be a sleeping giant.

Brazil's President Addresses World Forum

www.guardian.co.uk Sunday January 26, 2003 5:40 PM

DAVOS, Switzerland (AP) - To applause and cheers, Brazil's new leftist president appeared Sunday before the elite economic conference he once scorned and called for a massive drive to defeat poverty and hunger across the globe.

``My greatest desire is that the hope that has overcome fear in my country will also help vanquish it around the world,'' Luiz Inacio Lula da Silva told a hundreds of delegates at the World Economic Forum, an annual meeting of corporate and political leaders.

``I would like to invite all of you that are here, on this 'Magic Mountain' of Davos, to look at the world with other eyes,'' he said, in a reference to the classic novel by Thomas Mann set in Davos.

He said called for Western governments and big investors to create a global fund to fight poverty and hunger around the world.

Countries are spending billions and billions of dollars in an arms race and spending money on things that are not priorities,'' Silva said. We look at the third world countries and millions and millions of women and children die because they don't manage to eat the calories they need.''

Silva said he was bringing with him the same message that he gave on Friday to the World Social Forum in Porto Alegre, Brazil, billed as a grass-roots counterpoint to the Davos event.

Joking with the crowd after his address, the charismatic former revolutionary said ``the most fantastic thing'' was that he was going back to Porto Alegre in one piece.

My comrades will notice that you haven't taken a bite out of me,'' he said. Nor have I taken a bite out of you. I think there is room for us to get together to talk.''

The son of a poor farmer, Silva dropped out of school to help support his family and became a symbol of hope for Latin America's impoverished millions after his landslide election in October.

Silva said he saw no reason why participants at the World Economic Forum and the World Social Forum could not come together to learn from each other.

This is like a simple negotiation between a labor unionist and an employer,'' he said. Once they sit at the bargaining table, we can see there are many topics that can be improved so we can reach an agreement,'' he said.

Silva also called on rich nations to open up their markets to imports from poorer nations.

``All the export effort that we make will be useless if countries continue to preach free trade on one side and practice protectionism on the other side,'' he said.

Other events at the World Economic Forum on Sunday:

  • U.S. Secretary of State Colin Powell warned that without strong international action to disarm, Iraq could use its lethal weapons or share its technology with terrorists. ``The nexus of tyrants and terror, of terrorists and weapons of mass terror, is the greatest danger of our age,'' he said.

  • Powell indicated that the United States is willing to take additional steps to respond to North Korea's concerns about a possible U.S. military attack. He reaffirmed that the United States has no intention of attacking North Korea and said it is prepared to ``convey this in a way that will make this unmistakable to North Korea.''

  • Powell urged India and Pakistan to ``both take risks for peace'' and end years of tension and distrust. Powell said the United States had helped calm tensions last year when the nuclear-armed rivals came close to war over disputed Kashmir and an attack on the Indian Parliament in December 2001, and said Washington was ready to do more.

  • Microsoft founder Bill Gates announced a $200 million grant Sunday to help identify and solve the ``grand challenges in global health'' - including the AIDS virus and malaria - that the private sector has little financial incentive to tackle.

Brazil to hike surplus target above 4 pct -reports

www.forbes.com Reuters, 01.26.03, 2:11 PM ET

SAO PAULO, Brazil, Jan 26 (Reuters) - Brazil's government is expected to announce in the coming days that it will target a public sector primary surplus of above 4 percent of GDP this year in its latest move to build confidence among investors.

Local media reported on Sunday that Brazilian Central Bank President Henrique Meirelles told economists at the World Economic Forum in Davos, Switzerland, that Brazil would target a surplus above the 3.75 percent of gross domestic product it had agreed on with the International Monetary Fund.

That new target, at least three newspapers said, should be higher than 4 percent.

Shying away from details, Finance Minister Antonio Palocci told reporters Brazil would target a fiscal surplus that would guarantee its ability to continue making payments on its heavy, $260 billion public debt.

"Independent of our agreement with the IMF, the country is interested in planning its debt payments so that there are no doubts over its sustainability," Palocci said.

Investors battered Brazilian financial markets last year, worried the center-left administration of President Luiz Inacio Lula da Silva would mismanage the country's debt.

But repeated reassurances by Lula and his economic team that they will keep spending and inflation under control have helped rebuild confidence in Brazil's economy, which is Latin America's largest. Any increase in the surplus target should only further bolster the growing optimism, economists say.

Brazil is expected to have closed 2002 with a primary surplus of about 4 percent, above the 3.88 percent it agreed on with the IMF in last year's $30 billion aid package. The surplus target excludes debt payments.

Brazil to hike surplus target above 4 pct -reports

Reuters, 01.26.03, 2:11 PM ET

SAO PAULO, Brazil, Jan 26 (Reuters) - Brazil's government is expected to announce in the coming days that it will target a public sector primary surplus of above 4 percent of GDP this year in its latest move to build confidence among investors.

Local media reported on Sunday that Brazilian Central Bank President Henrique Meirelles told economists at the World Economic Forum in Davos, Switzerland, that Brazil would target a surplus above the 3.75 percent of gross domestic product it had agreed on with the International Monetary Fund.

That new target, at least three newspapers said, should be higher than 4 percent.

Shying away from details, Finance Minister Antonio Palocci told reporters Brazil would target a fiscal surplus that would guarantee its ability to continue making payments on its heavy, $260 billion public debt.

"Independent of our agreement with the IMF, the country is interested in planning its debt payments so that there are no doubts over its sustainability," Palocci said.

Investors battered Brazilian financial markets last year, worried the center-left administration of President Luiz Inacio Lula da Silva would mismanage the country's debt.

But repeated reassurances by Lula and his economic team that they will keep spending and inflation under control have helped rebuild confidence in Brazil's economy, which is Latin America's largest. Any increase in the surplus target should only further bolster the growing optimism, economists say.

Brazil is expected to have closed 2002 with a primary surplus of about 4 percent, above the 3.88 percent it agreed on with the IMF in last year's $30 billion aid package. The surplus target excludes debt payments.

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